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Animoca Brands has partnered with Standard Chartered Bank (Hong Kong) and HKT to establish a joint venture called Anchorpoint, with the aim of obtaining a stablecoin issuer license in Hong Kong.

The collaboration marks a significant step towards integrating digital assets into traditional financial systems. The new entity, Anchorpoint Financial Limited, submitted its application to the Hong Kong Monetary Authority on August 1, the same day Hong Kong’s Stablecoin Ordinance came into effect.

This initiative follows the trio’s participation in the HKMA sandbox program since July 2024, where they have been testing regulated stablecoin use cases for both institutional and retail users.

Evan Auyang, group president of Animoca, emphasized that the partnership seeks to bridge the gap between traditional finance and digital assets by incorporating stablecoins into the mainstream financial ecosystem.

The Stablecoin Ordinance requires issuers to implement strict risk management protocols, maintain fiat reserves, and allow redemptions within one business day. With over 40 applications received, only a small number are expected to be approved.

Other participants in the sandbox include companies like Jingdong Coinlink Technology and RD InnoTech, which are also developing Hong Kong dollar–backed stablecoins.

Yat Siu, chairman of Animoca, highlighted the unique position of HKD stablecoins, which are indirectly pegged to the U.S. dollar, as a regulated alternative outside the U.S. market. He believes that Hong Kong’s clear regulatory approach is fostering innovation and could accelerate the adoption of digital payments.

On a global scale, Hong Kong’s regulatory framework aligns with efforts in other jurisdictions, such as the EU’s MiCA regulations and the U.S. GENIUS Act, to create a structured stablecoin market.

This move reflects Animoca’s broader strategy of promoting blockchain adoption through compliance-focused financial products.

What is Animoca? Animoca is a blockchain-based company that develops and invests in Web3, NFT, and gaming projects.

What is Animoca?

Animoca Brands is a leading blockchain-based company that has emerged as a major player in the Web3, NFT (Non-Fungible Token), and gaming industries. Founded in 2014, Animoca was initially known for its mobile game development, but over the years, it has evolved into a powerful force in the decentralized digital ecosystem. The company’s mission is to build and invest in innovative projects that leverage blockchain technology to create new forms of digital ownership, entertainment, and value creation.

At its core, Animoca operates as both a developer and an investor. On one hand, it creates its own blockchain-based games and applications, often incorporating NFTs and tokenized assets to enhance user engagement and economic models. On the other hand, it actively invests in and supports a wide range of startups and projects within the Web3 space through its venture capital arm, Animoca Ventures. This dual approach allows Animoca to not only shape the future of digital entertainment but also to benefit from the growth of the broader blockchain industry.

One of the key areas where Animoca has made significant strides is in the development of NFT-based games. These games often allow players to own, trade, and monetize in-game assets as unique digital collectibles. By integrating blockchain technology, Animoca ensures that these assets are truly owned by users, rather than being controlled by centralized platforms. This model fosters a more transparent and fair economy within the gaming world.

In addition to gaming, Animoca has also been involved in various other Web3 initiatives, including metaverse development, decentralized finance (DeFi), and digital identity solutions. Its portfolio includes well-known projects such as The Sandbox, Decentraland, and GameFi platforms, which have become central hubs for creators, developers, and users in the blockchain space.

As the Web3 landscape continues to evolve, Animoca remains at the forefront, driving innovation and shaping the future of digital ownership and interactive experiences. Through its combination of development, investment, and strategic partnerships, Animoca is helping to redefine what is possible in the world of blockchain-powered entertainment and beyond.

What is a Stablecoin? A stablecoin is a type of cryptocurrency designed to have a stable value, usually pegged to a fiat currency like the US dollar.

What is a Stablecoin?

A stablecoin is a type of cryptocurrency designed to have a stable value, usually pegged to a fiat currency like the US dollar. Unlike other cryptocurrencies such as Bitcoin or Ethereum, which can experience significant price volatility, stablecoins aim to provide a more predictable and reliable store of value within the digital asset ecosystem.

The primary purpose of stablecoins is to reduce the risk associated with the highly fluctuating prices of traditional cryptocurrencies. By maintaining a stable value, they serve as a medium of exchange, a unit of account, and a store of value—functions that are essential for everyday transactions and financial operations in both traditional and decentralized finance (DeFi) environments.

Stablecoins are typically backed by reserves of assets that maintain their value, such as cash, government bonds, or other stable currencies. This backing ensures that each stablecoin in circulation has a corresponding value in the real world, which helps to maintain its stability. For example, a stablecoin pegged to the US dollar would be backed by an equivalent amount of USD held in reserve by the issuing entity.

There are several types of stablecoins, each with different mechanisms for maintaining their value. The most common include:

Fiat-backed stablecoins: These are the most straightforward, where each coin is fully backed by a reserve of fiat currency, such as USD, EUR, or JPY. Crypto-backed stablecoins: These are collateralized by other cryptocurrencies, often with a higher value than the stablecoin itself to account for price fluctuations. Algorithmic stablecoins: These use smart contracts and algorithms to adjust the supply of the coin in response to market demand, aiming to maintain a stable price without relying on traditional reserves.

Stablecoins have become a crucial component of the broader cryptocurrency landscape, facilitating smoother transactions, enabling cross-border payments, and serving as a bridge between traditional finance and the decentralized world. As the adoption of blockchain technology continues to grow, the role of stablecoins is expected to expand further, offering users a more stable and accessible way to engage with digital assets.

What is a Joint Venture? A joint venture is a business arrangement where two or more parties collaborate to achieve a specific goal, often sharing resources and profits.

What is a Joint Venture?

A joint venture (JV) is a strategic business arrangement in which two or more parties—such as individuals, companies, or organizations—collaborate to achieve a specific goal. This partnership is typically formed for a limited period and often involves the sharing of resources, expertise, risks, and profits. Unlike a general partnership, a joint venture is usually established for a particular project or objective, rather than an ongoing business operation.

The primary purpose of a joint venture is to combine the strengths of each party to accomplish something that would be difficult or less efficient to achieve individually. For example, one company may bring in capital and market access, while another contributes technology or operational know-how. By pooling these assets, the partners can reduce costs, minimize risk, and increase their chances of success in a competitive environment.

Joint ventures are common in various industries, including real estate, technology, manufacturing, and finance. They can take many forms, such as a new entity created specifically for the venture, a contractual agreement between existing entities, or a shared management structure. In some cases, a joint venture may even result in the creation of a new subsidiary or company.

One of the key advantages of a joint venture is that it allows businesses to enter new markets or develop new products without fully committing their own resources. It also provides an opportunity for knowledge transfer and skill development between the partners. However, like any business arrangement, joint ventures come with their own set of challenges, such as differences in corporate culture, conflicting objectives, and the need for clear governance structures.

Overall, a joint venture is a powerful tool for fostering collaboration and innovation in the business world. When structured properly, it can lead to mutual benefits and long-term success for all involved parties.

Why is Hong Kong Important? Hong Kong is a major financial hub with a growing interest in blockchain and digital currencies, making it an attractive market for stablecoin initiatives.

Why is Hong Kong Important?

Hong Kong has long been recognized as a global financial hub, serving as a bridge between the East and the West. Its strategic location, robust legal framework, and deep financial markets have made it one of the most important centers for international trade and finance. In recent years, the city has also emerged as a key player in the world of blockchain technology and digital currencies, further solidifying its significance in the evolving landscape of global finance.

One of the primary reasons Hong Kong is gaining attention in the cryptocurrency space is its strong regulatory environment. Unlike some jurisdictions that have imposed strict bans or heavy restrictions on digital assets, Hong Kong has taken a more balanced and forward-thinking approach. The Hong Kong Monetary Authority (HKMA) has been actively exploring the potential of blockchain technology, particularly in the context of central bank digital currencies (CBDCs) and stablecoins. This regulatory openness has attracted both local and international fintech companies looking to innovate within a supportive ecosystem.

The city’s growing interest in stablecoins is another factor that underscores its importance. Stablecoins, which are designed to maintain a stable value by being pegged to traditional assets like the US dollar or other fiat currencies, have gained traction as a reliable medium of exchange in the digital economy. Hong Kong’s well-developed financial infrastructure and high level of financial literacy make it an ideal market for the adoption and integration of stablecoin initiatives.

Moreover, Hong Kong’s status as a free port with minimal trade barriers continues to attract global investors and businesses. Its tax-friendly environment, coupled with a highly skilled workforce and advanced technological infrastructure, positions it as a prime location for blockchain startups and digital asset projects. As the demand for faster, cheaper, and more transparent financial services grows, Hong Kong is well-positioned to lead the next wave of innovation in the digital finance sector.

In conclusion, Hong Kong’s importance in the global financial system is not limited to its traditional role as a trading and banking center. Its progressive stance on blockchain and digital currencies, combined with a strong regulatory foundation and economic stability, makes it an attractive and influential market for stablecoin initiatives and other emerging financial technologies. As the world moves toward a more digitized and decentralized financial future, Hong Kong is likely to play an even more significant role in shaping the next generation of money and finance.

What Does This Mean for Users? This collaboration could lead to new digital payment options and increased adoption of stablecoins in Hong Kong and beyond.

What Does This Mean for Users?

The recent collaboration between key financial institutions and technology providers in Hong Kong marks a significant step forward in the evolution of digital payments. For users, this partnership could translate into a broader range of digital payment options that are faster, more secure, and more convenient than traditional methods.

One of the most notable outcomes of this collaboration is the potential integration of stablecoins into everyday transactions. Stablecoins, which are digital currencies pegged to the value of traditional assets like the US dollar or the Hong Kong dollar, offer the benefits of blockchain technology—such as transparency and speed—without the volatility associated with other cryptocurrencies. As these stablecoins become more widely accepted, users may find themselves using them for everything from online shopping to cross-border remittances.

This development also signals an increased adoption of stablecoins across the region. With the support of major financial players, stablecoins could gain greater legitimacy and trust among consumers. This could encourage more individuals and businesses to explore digital assets as a viable alternative to traditional fiat currency, especially in a market like Hong Kong, where innovation and financial services have long been intertwined.

Moreover, the collaboration could lead to improved infrastructure for digital payments, including enhanced security measures and better user interfaces. As more platforms adopt stablecoin-based solutions, users can expect a smoother and more seamless experience when making transactions, whether domestically or internationally.

In the long term, this shift toward digital payments and stablecoins could contribute to a more inclusive financial ecosystem. By reducing reliance on physical cash and traditional banking systems, users—especially those in underserved communities—may gain greater access to financial services and opportunities.

Overall, the implications of this collaboration are far-reaching. For users, it represents an exciting opportunity to engage with a more efficient, secure, and innovative financial landscape—one that is poised to shape the future of money in Hong Kong and beyond.

FAQ about Animoca Brands’ Joint Venture with Standard Chartered and HKT

Frequently Asked Questions (FAQ) about Anchorpoint’s Stablecoin License Application

Question 1: What is Anchorpoint?

Answer 1: Anchorpoint is a new joint venture formed by Animoca Brands, Standard Chartered Bank (Hong Kong), and HKT. The entity aims to apply for a stablecoin issuer license in Hong Kong.

Question 2: Why did they form this joint venture?

Answer 2: The three companies formed Anchorpoint to collaborate on developing and launching a regulated stablecoin in Hong Kong. This partnership combines their expertise in blockchain, finance, and telecommunications.

Question 3: What is the purpose of applying for a stablecoin license?

Answer 3: The purpose is to legally issue and manage a stablecoin under the supervision of the Hong Kong Monetary Authority (HKMA). This would allow them to operate within the regulatory framework and provide financial services to users in a secure manner.

Question 4: How many applicants are expected to get approval for the stablecoin license?

Answer 4: Over 40 applications were submitted for the HKMA stablecoin license, but only a few are expected to receive approval. The selection process is competitive and rigorous.

Question 5: What role does the HKMA sandbox play in this initiative?

Answer 5: The trio joined the HKMA sandbox in 2024 to test their regulated stablecoin solutions in a controlled environment. This allows them to refine their product before seeking full regulatory approval.